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Why may the loss of green areas not appear directly in GDP?

Answer and explanation

Correct answer: Because the full monetary value of environmental loss is generally not recorded

GDP records the market value of current production, not every change in natural capital or environmental quality. When green areas are destroyed, the lost benefits—clean air, biodiversity, recreation and protection from heat—usually lack complete market prices, so the damage may not appear directly. Option D is correct; A, B and C are factually or conceptually wrong.

Related tags

Green AreasNatural CapitalEnvironmental LossGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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